Naturally Splendid USA Closes Transaction to License Hemp and Cannabinoid Extraction and Formulation and Naturally Splendid Closes $1,847,132 Financing

Vancouver, BC / ACCESSWIRE / February 25, 2015 / Naturally Splendid Enterprises (the "Company") (NSP - TSX Venture) (NSPDF - OTCQB) (50N - Frankfurt) is pleased to announce Naturally Splendid USA Ltd., its wholly owned subsidiary, ("Naturally Splendid USA") has closed the Novation Agreement with Full Spectrum Laboratories Limited ("FSL"), Boreal Technologies, Inc. ("Boreal") and Naturally Splendid whereby Boreal has assigned, and Naturally Splendid USA has assumed, all rights, title and interest in and to a Restated and Amended License Agreement between FSL and Boreal (the "License Agreement").

Under the terms of the Novation Agreement, Naturally Splendid USA paid $725,000 to Boreal and Naturally Splendid issued 2,928,571 common shares to Full Spectrum Partners, LLLP (an entity controlled by FSL).

Terms of the License Agreement

As a result of closing of the Novation Agreement, Naturally Splendid USA is now the licensee under the License Agreement. The License Agreement provides that the licensee has a worldwide license to manufacture, commercialize and sell products based on certain proprietary technology relating to (1) omega extraction and formulations (the "Omega Technology") and (2) cannabinoid extraction and formulations (the "CBD Technology")

In consideration of the License, the Naturally Splendid USA will be required to pay to FSL, on a quarterly basis, a 4.5% gross revenue royalty (the "Royalty"). For each year after the second anniversary of the License Agreement, Naturally Splendid USA will be required to pay a minimum Royalty of USD $1.6 million (the "Minimum Royalty"). The License Agreement provides that no Royalties will be payable to FSL on the first $1,750,000 of royalties payable under the License Agreement. Therefore, in the event that no revenues are earned under the License Agreement, the Minimum Royalty provision will not apply until November 17, 2018. Failure to pay the Minimum Royalty on November 17, 2018 may result in termination of the License Agreement.

The term of the License Agreement is for a period of 10 years and may, at the option of Naturally Splendid USA, be renewed for an additional 5 years.

FSL will have the right to terminate the License Agreement in the event that (i) Naturally Splendid USA fails to make a payment due under the License Agreement and remains in default of such nonpayment, (ii) Naturally Splendid USA is in breach of a material term of the License Agreement, (iii) Naturally Splendid USA becomes insolvent, or (iv) a change of "Control" in Naturally Splendid USA. "Control" is defined as the issuance of fifty percent (50%) of the issued and outstanding shares of Naturally Splendid USA.

Intellectual Property Comprising the Omega and CBD Technology

The Omega Technology and the CBD Technology are comprised of:

(a)on an exclusive basis, (i) the terpene, hemp oil and cannabinoid formulation technology, (ii) the omega formulation technology, (ii) protein formulation technology, (iv) the cannabinoid technology, and (v) the tongkat ali formulations; and

(b)on a non-exclusive basis, (i) the Supercritical CO2 and plant oil extraction technology, (ii) genetic plant and artificial seed technology, (iii) biosynthesis of cannabinoids, and (iv) microencapsulation of cannabinoid oils.

(the "License")

In addition, the Omega Technology and the CBD Technology are comprised of the U.S. Provisional Patent Applications and U.S. Patent Applications set forth below as well as all know-how, intellectual property and standard operating procedures:

----------------------------------------------------------------------------------------------------------- |Name and Number |Type |Owner | |---------------------------------------------------------------------------------------------------------| |Cannabis ToxinsUS 61/817,584US 61/986,707 |US Provisional |Full Spectrum| | | |Laboratories | | | |Limited | |---------------------------------------------------------------------------------------------------------| |Synthesis of Cannabinoids and |US Provisional&PCT|Full Spectrum| |Cannabinoid FormulationsUS | |Laboratories | |61/770,776PCT/US14/18944 | |Limited | |---------------------------------------------------------------------------------------------------------| |Terpene, Hemp Oil and Cannabinoid FormulationsUS 61/773,637US 61/898,024|US Provisional |Full Spectrum| | | |Laboratories | | | |Limited | |---------------------------------------------------------------------------------------------------------| |Cannabinoid Formulations13/547,039 |US Patent |Full Spectrum| | |Application |Laboratories | | | |Limited | -----------------------------------------------------------------------------------------------------------

Restrictions on CBD Technology

Naturally Splendid will not produce, sell or market any products utilizing the CBD Technology until it has obtained a satisfactory opinion on the legality of these products and the acceptance of the TSXV.

Business Focus on Omega Technology

Naturally Splendid will focus its resources on selling those products developed utilizing the Omega Technology, such as, HempOmega(TM). Currently, Naturally Splendid is actively developing proprietary formulations incorporating HempOmega(TM) as well as working closely with Nature's Health Products Canada Corp. ("NHPCC"), a member of the POS Group of Companies based in Saskatoon, Saskatchewan, to capitalize on immediate opportunities to present and sell bulk volumes of HempOmega(TM) to selected clients.

Private Placement Financing

In conjunction with closing the above noted transaction, Naturally Splendid completed its previously announced private placement financing by issuing a total of 7,388,528 units ("Units") at $0.25 per Unit for gross proceeds of $1,847,132.

Each Unit is comprised of one common share of Naturally Splendid and one-half of one common share purchase warrant ("Warrant"), with each whole Warrant entitling the holder to purchase one additional common share at $0.40 per share for a period of two years from the date of the issue. Naturally Splendid will have the right to accelerate the expiry date of the Warrants if, at any time, the average closing price of Naturally Splendid's common shares is equal to or greater than $0.50 for 10 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after Naturally Splendid issues a news release announcing that it has elected to exercise this acceleration right.

Charles R. Brink, directly and indirectly, purchased 3,417,043 Units under the private placement financing. Together with the 2,928,571 shares issued under Novation Agreement, Mr. Brink will control, directly and indirectly, 6,345,614 common shares of Naturally Splendid, which equals approximately 14.5% of the issued and outstanding shares of Naturally Splendid.

In connection with the proceeds raised under the financing, the Company paid finders cash commissions totaling $36,720 and issued finders 146,880 non-transferable warrants. Each finder's warrant is exercisable on the same terms as the Warrants described above.

The securities issued under the financing will be subject to a hold period expiring on June 24, 2015 pursuant to applicable Canadian securities laws and the rules of the TSX Venture Exchange.

Proceeds of the private placement financing were used to satisfy the $725,000 payment under the Novation Agreement and the balance will be used for product development as well as for general working capital and corporate purposes.

New Insiders

In conjunction with closing of the transaction and the private placement financing, Charles R. Brink was appointed as a member of Naturally Splendid's board of directors. In addition, Frank Siemens resigned as a director due to health reasons. Naturally Splendid wishes to thank Mr. Siemens for his services as a director of Naturally Splendid.

Mr. Brink will also be an insider of Naturally Splendid as a result of his acquisition, directly and indirectly, of 3,417,043 Units under the private placement financing and 2,928,571 shares under Novation Agreement. As such, Mr. Brink will own approximately 14.5% of the issued and outstanding shares of Naturally Splendid.

Mr. Brink was a Founder, Member of the Board, Chief Operating Officer and later General Counsel for Mona Vie, Inc. ("Mona Vie"), being a nutritional and energy drink company. Mr. Brink is a member of the Board and Managing Director of FSL as well as a controlling shareholding.

Resumption of Trading

Naturally Splendid's common shares will resume trading under the symbol "NSP" on February 26, 2015.

About Naturally Splendid Enterprises Ltd.

Naturally Splendid has an exclusive sales agreement to market and distribute, in North America, the full complement of patent pending, plant-based omega products created by Boreal Technologies. The products include HempOmega(TM) and H2Omega(TM), as well as the FlaxOmega(TM), CanolaOmega(TM), and ChiaOmega(TM) plant based omega products. These novel products utilize microencapsulation and are available in both a powder format and an aqueous solution for increased flexibility in ingredient applications and stand-alone products.

Naturally Splendid's 100% owned NATERA(TM) line of hemp-based superfood products are carried nationwide by Canada's leading health food distributors and a network of retail stores across Canada including major retailers and specialty stores. Naturally Splendid's recently rebranded "NATERA(TM)" line of products includes natural and flavored shelled hemp seeds as well as natural and flavored hemp protein powders.

About Full Spectrum Labs Limited.

Full Spectrum Laboratories, LTD. Incorporated in Ireland, is a bioresearch and product development company with operating subsidiaries in Canada and the United States. The company has principally focused on the plant cannabis sativa and has developed numerous technologies and made several discoveries resulting in two granted patents and over 11 patent applications, in just under 5 years. FSL currently concentrates on formulation and extraction technologies; analytical cannabis testing in Canada; advance cannabis plant breeding specializing in CBD expression; and cannabinoid bio-synthesis.

For more information e-mail info@naturallysplendid.com or call 604-559-8051

On Behalf of the Board of Directors

J. Craig Goodwin

CEO, Director

Contact Information

Naturally Splendid Enterprises Ltd.

(NSP - TSX Venture; NSPDF - OTCQB; 50N Frankfurt)

2435 Beta Avenue
Burnaby, BC, V5C 5N1

Phone: (604) 559-8051
Fax: (604) 570-0934
E-mail: info@naturallysplendid.com

Website: www.naturallysplendid.com

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Naturally Splendid cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Naturally Splendid's control. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Naturally Splendid undertakes no obligation to publicly update or revise forward-looking information.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE: Naturally Splendid Enterprises Ltd.